Legal services for regulatory actions and internal investigations are rising at U.S. and United Kingdom law firms, but overall litigation is falling, according to the 2011 Fulbright & Jaworski Litigation Trends Survey.

More than a third of corporate counsels report there has been an increase in external regulatory inquiries directed at their companies. More than one-quarter of respondents expect the year ahead will bring more litigation and regulation as companies attempt to grow in an economy that remains volatile.

A large majority of corporate counsels polled in the United States and the United Kingdom predict litigation either will rise or remain the same in the next 12 months: 92 percent of U.S. companies and 85 percent of U.K. companies.

Of those, one-third of U.S. respondents predict an increase while 20 percent of U.K. respondents expect a rise in legal disputes in the coming 12 months. That compares with 31 percent and 16 percent, respectively, last year.

By size, nearly twice as many large-caps, those with $1 billion or more in gross revenues, as mid-caps, those between $100 million and $999 million in revenues, expect litigation to rise during the next 12 months.

More than one-third of respondents in the technology, engineering and health care industries are bracing for a jump in disputes.

Stricter regulation and company growth topped the reasons cited for the anticipated increase in litigation. Meanwhile, worries over the poor economy, the No. 1 reason cited last year for an expected rise in disputes, declined significantly to 21 percent from 41 percent.

Survey respondents have reported an upward trend of regulatory proceedings started against their companies each year since 2009, when 34 percent of all respondents said at least one regulatory proceeding had been filed against their company in the previous 12 months.

In 2010, 37 percent reported at least one regulatory proceeding. In this year's survey, 40 percent reported one or more regulatory proceedings.